2

Perhaps one of the most widely discussed topics on the provision of public housing in recent years is whether subsidies should continue to

to be

be given to

to those tenants who have improved

The Committee has examined this in their financial situation.

We discover that it is

is an undeniable fact that depth.

a large number of public housing tenants have prospered since they moved into public estates. Statistics showed that from 1974 to 1984, the income of public housing tenants recorded an average annual the increase of 7% after deducting inflation; while during same period public housing rents only increased in real terms at 0.6% each year. From this it can be seen that with improving per are able to upgrade capita earnings, our public housing tenants their quality of life steadily.

net

I

am

honourable colleagues

the others.

will

agree

that

in

a

sure my substantial subsidy without good grounds to support should not be

and we must take extra care a normal government policy, operating subsidized programmes, especially when public resources are scarce, because generous provisions for a single cause would inevitably imply deprivation for

Following such line of thinking, a programme like Hong Kong's massive plan to house So significant a proportion of the population must carried out in the interests of the community at large, together

the review of

which with progressive

a

charged.

basis

upon

in

rents

jeopardy.

be

are

The

The Committee has concluded that while the Government able to care must continue to take care of those who

of those who are least able

to reduce for themselves, it has

look for to

means ways and expenditure in public housing, without causing undue hardship or putting Committee sees no reason to carry on policies which allow for across-the-board subsidies, particularly to those who could have afforded to share a large part of the costs without the danger, of lowering their living standard.

the

objective

of

the

programme

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